Figure 11-5 -In Which of the Following Ways Is a Monopolist Different

question 98

Multiple Choice

Figure 11-5
-In which of the following ways is a monopolist different from a perfect competitor?

• A)Average cost will continually drop as output expands.
• B)Price is above marginal revenue.
• C)Average total cost equals average fixed costs plus average variable costs.
• D)The demand curve for the industry has a negative slope.

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Definitions:

Cash Sales

Transactions where goods or services are exchanged immediately for cash, without the extension of credit.

Account Sales

A detailed report provided by a consignee or an agent to the consignor detailing the sale of consigned goods, including prices obtained and associated costs.

Permanent Account

An account in the general ledger that is not closed at the end of the accounting period, with its balances carried over into the next period.

Temporary Account

A temporary account is an account that is closed at the end of each accounting period, with its balances transferred to permanent accounts, used to track revenues, expenses, and withdrawals during the period.